US 30-year mortgage rate climbs above 6% for first time since 2008

Higher mortgage rates have pushed refinance activity down more than 80% from last year, industry group says

By Ovunc Kutlu

ANKARA (AA) - The US 30-year fixed mortgage rate climbed above the 6% mark last week for the first time since 2008, according to Washington, D.C.-based Mortgage Bankers Association (MBA) on Wednesday.

The rate rose to 6.01%, from 5.94%, for the week ending Sept. 9, "which is essentially double what it was a year ago," Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.

"Higher mortgage rates have pushed refinance activity down more than 80 percent from last year and have contributed to more homebuyers staying on the sidelines," he said.

The average contract interest rate for 15-year fixed-rate mortgages also increased to 5.30%, from 5.23%, according to MBA.

The Market Composite Index, which measures mortgage loan application volume, fell 1.2% from a week earlier, while it declined 12% compared to the previous week, it added.

Kaynak:

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